The Russian government has introduced draft amendments to regulate the taxation of income derived from crypto transactions and mining activities.
The Russian government has introduced draft amendments to regulate the taxation of income derived from crypto transactions and mining activities.
According to a report from the news agency Interfax, the Finance Ministry has classified cryptocurrencies as property for tax purposes, proposing a maximum tax rate of 15% on income generated from these activities.
Under the new legislation, income received from mining will be assessed based on the market value of the crypto at the time it is obtained. Miners will also have the opportunity to deduct related operational expenses from their taxable income.
Additionally, the proposed changes stipulate that income from trading cryptocurrencies will be taxed similarly to securities transactions, exempting such transactions from value-added tax.
To enhance compliance, mining operators will be required to report information on individuals utilizing their mining infrastructure. This move is part of a broader strategy by the Finance Ministry to balance governmental interests with those of businesses engaged in crypto activities.
The original crypto taxation bill was first introduced in December 2020, with its initial reading occurring in 2021. Recently, the Federal Tax Service of Russia suggested taxing unrealized gains for miners, further complicating the regulatory landscape.
Moreover, the government has implemented restrictions on unregistered individuals, limiting their Bitcoin mining to a monthly power consumption of no more than 6,000 kilowatt-hours.
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